Transaction in Own Shares

BT Group PLC
27 September 2004

Monday, 27 September 2004

                                  BT GROUP PLC

                           TRANSACTION IN OWN SHARES

BT Group plc announces that it has today purchased through Cazenove & Co. Ltd
2,000,000 ordinary shares at a price of 178.8991 pence per share.  The purchased
shares will all be held as treasury shares.

Following the above purchase, BT Group plc holds 87,885,569 ordinary shares as
treasury shares.  The total number of ordinary shares in issue (excluding shares
held as treasury shares) is 8,546,743,469.


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